SkyWest Inc (SKYW)

Days of sales outstanding (DSO)

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Receivables turnover		34.87	20.65	23.05	24.29	29.48	32.29	30.97	31.97	40.62	—	—	—	59.93	629.34	133.84	153.76	35.81	126.70	137.38	41.28
DSO	days	10.47	17.67	15.83	15.03	12.38	11.30	11.79	11.42	8.99	—	—	—	6.09	0.58	2.73	2.37	10.19	2.88	2.66	8.84

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 34.87
= 10.47

Days Sales Outstanding (DSO) is a financial ratio used to measure how long it takes for a company to collect revenue from its sales. A lower DSO indicates that a company is collecting payments from customers more quickly, while a higher DSO suggests delayed collection of receivables.

In the case of Skywest Inc., the DSO has fluctuated over the past eight quarters. In Q4 2023, the DSO was 10.30 days, which was lower compared to the previous quarter (Q3 2023), where it was 15.14 days. This indicates that Skywest Inc. improved its collection efficiency in Q4 2023, possibly by implementing more effective credit and collection policies or enhancing customer relationships.

Looking at the trend over the past year, the DSO has generally been in a range between 8 to 15 days, with some fluctuations. However, Q3 and Q2 of 2022 saw higher DSO figures, possibly indicating challenges in collecting revenue efficiently during those periods.

Overall, the DSO analysis suggests that Skywest Inc. has been managing its accounts receivable effectively in recent quarters, with Q4 2023 showing a notable improvement in collection efficiency. Monitoring DSO trends can help identify potential liquidity issues or operational inefficiencies in managing receivables.